(20 Dec. 1886) of the chancellorship of the exchequer in Lord Salisbury's government, and the lead of the House of Commons, Goschen, with the approval of Lord Hartington, accepted the offer made to him by Lord Salisbury to enter his cabinet as Lord Randolph's successor, W. H. Smith [q. v.] at the same time undertaking to lead the House of Commons.
Goschen's accession to the ministry at this crisis was of the greatest importance in keeping the unionist government on its feet. He met, nevertheless, one more personal reverse, in his failure to win back from the liberal home rulers the Exchange division of Liverpool (26 Jan. 1887). A fortnight later he was elected by a majority of 4000 for St. George's, Hanover Square, a seat which he retained till he went to the House of Lords. Henceforward, as a member of the Salisbury government, sharing the responsibility of his colleagues, Goschen necessarily played a less individual part than heretofore in the public eye, though he took a prominent share in the fierce conflicts inside and outside parliament against the powerful home rule alliance between liberals and Irish nationalists. For six years in succession he brought forward the budget, meeting with much skill the steadily growing expenditure of the country, whilst boasting with truth that at the same time he was gradually reducing its debt. His most memorable achievement whilst chancellor of the exchequer was his successful conversion of the national debt in March 1888 from a 3 per cent, to a 2¾, and ultimately a 2½ per cent, stock. The great courage and ability required to carry through this operation received the recognition of political opponents, including Gladstone, not less than of his own friends. During the 'Baring crisis' in November 1890 his courage and firmness as finance minister were again demonstrated. The situation was saved; whilst he absolutely refused to yield to pressure to employ the funds or credit of the state to buttress up the solvency of a private institution (Life, vol. ii. chap, vii., and note in Appendix III. by Lord Welby). In the same year a good deal of unpopularity fell to Goschen's share, resulting from the 'licensing clauses' (ultimately abandoned) which it was proposed to introduce into the local taxation bill, for providing out of taxes on beer and spirits a compensation fund to facilitate the reduction in the number of public-houses.
At the end of 1891 Mr. Arthur Balfour succeeded to the leadership of the House of Commons (Life, ii. 186 seq.); but the days of the unionist ministry were already numbered, and the general election of the following June placed Gladstone once more in power. Over the home rule bill of 1893 the old controversy of 1886 was revived in all its bitterness, and Goschen was again in the front rank of the combatants. In opposition, he formally joined the conservative party, became a member of the Carlton Club, and repeated with undiminished power the efforts he had made nine years before to sustain the cause of the union. This time, however, Gladstone's policy was accepted by the House of Commons; but only to be rejected by the House of Lords, who were supported by the country at the general election of 1895.
Lord Salisbury's new administration was joined by Lord Hartington, Mr. Chamberlain, and other liberal unionists, whilst Goschen to his great satisfaction went to the admiralty (June 1895), where twenty years before he had won well-earned fame. His last period at the admiralty, which lasted till the autumn of 1900, was eventful; for though the country remained at peace with the great powers of the world, our foreign relations at times became severely strained. Difficulties connected with Venezuela, Crete, Nigeria, Port Arthur, Fashoda, and German sympathy with President Krüger, brought the possibility of rupture before the eyes of all men. Goschen felt that a very powerful British navy was the best security for the peace of the world, as well as for our own protection, and the vast increases of our naval establishments and the consequent growth of naval estimates were generally approved. The strain of these five years told upon his strength. The death of Mrs. Goschen in the spring of 1898 had been a heavy trial; and the weight of advancing years determined him to retire from office before the approaching general election. Accordingly on 12 Oct. 1900, to the regret of the public and the naval service, he resigned, and in December was raised to the House of Lords as Viscount Goschen of Hawkhurst, Kent. The remainder of his life Lord Goschen hoped to spend mainly at Seacox Heath, his home in Kent, with more leisure than he had found in the past for seeing his family and friends, for indulging his strong taste for reading, and for attending to the interests of his estate. In 1903 he published the life and times of his grandfather, on which he had long been engaged; and in 1905 a volume of 'Essays
